The won-dollar exchange rate surpassed 1,400 won during after-hours trading on September 24.
In the Seoul foreign exchange market, the won-dollar rate climbed to as high as 1,400.3 won at around 5:33 p.m. This is the first time in about a month that the rate has risen above the 1,400-won level during intraday trading since August 22, when it peaked at 1,400.5 won.
The weekly closing price on this day (as of 3:30 p.m., 1,397.5 won) was also the highest since August 21, when it closed at 1,398.4 won. The exchange rate opened at 1,393.0 won, up 0.4 won from the previous day, and continued to rise throughout the session.
The dollar strengthened as risk aversion sentiment intensified. The dollar index, which measures the value of the U.S. dollar against the currencies of six major countries, continued to rise from the 97.2 level at the opening and reached 97.611 at around 5:50 p.m.
Net selling by foreign investors in the domestic stock market also pushed the exchange rate higher. The KOSPI closed at 3,472.14, down 14.05 points (0.40%) from the previous day. Foreign investors recorded net sales of approximately 21.6 billion won in the main stock market on this day.
Additionally, uncertainties in Korea-U.S. trade negotiations, including pressure over 350 billion dollars in U.S.-bound investments, have recently contributed to downward pressure on the won.
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